UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on June 8, 2011



### NOTICE OF ACTION TAKEN

-- DOCKET DOT

- OST

- 20 0 4

- 18920

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicated (no

a dditional confirming order will be issued in this matter).

Applicant 

### : SRILANKAN AIRLINES LTD. Date Filed: April 7, 2011

Relief requested: Renew e xemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of persons,

property , and mail from points behind Sri Lanka, via Sri Lanka and intermediate points, to a point or points in the United States and beyond

, pursuant to a code

- share arrangement with a ny duly authorized and properly supervised U.S. or foreign air carrier

.

If ren ewal, date and citation of last action: April 23, 2009, in this docket

Applicant representative: David Heffernan (202) 663

- 6360

DOT Analyst: Shelita A. Johnson (202) 366

- 1226

Responsive pleadings: None filed

DISPOSITION

Action: Approved Ac tion date : June 8, 20 11

Effective dates of exemption authority granted: June 8, 20 11

– June 8, 201 3

Basis for approval (bilateral agreement/reciprocity)

. United States

- Sri Lanka Air Transport Agreement

Except to the extent exempted/waived, this aut hority is subject to the terms, conditions, and limitations indicated:

X Standard exemption conditions (attached) Foreign air carrier permit ( Order )

Special conditions: SriLankan Airlines may only conduct the servic es authorized above under a code

- share arrangement with a duly authorized and properly supervised U.S. or foreign air carrier. Sri Lankan airlines may not itself operate flights to or from the United States without further order of the Department.

Remarks : Based on the record, we find that the applicant is substantially owned and effectively controlled by the

Government and citizens of Sri Lanka

. 1

Action taken by: Paul L. Gretch, Director

Office of International Aviation

Under authority assigne d by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform the proposed operations; (2) our action was consistent with Department policy; (3) grant of the authority was consistent with the public intere st; and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

1 In its application for renewal, SriLankan Airlines states that, since our last action granting it exemption authority (cited above), its ownership has changed. It states that it is now 100% owned by the Government and citizens of Sri Lanka, and that its Chairman and

all Board members Sri Lankan citizens.Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR § 385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov12/2007 Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from i ts homeland for such operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U. S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) from a foreign airport that would be the holder’s last point of departure for the United States, contact its International Industry Representative (IIR) (formerly referred to as Internati onal Principal Security Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requirements for mini mum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Managem ent Branch (AFS

- 260), Flight Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with res pect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the Un ited States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or othe r tribunal of the United States. In this condition, the term "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the pur pose of this definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States

. This authority shall not be effective during any period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval under Title 49 of the U.S. Code.